- Single Touch Payroll (STP) is a change to the way employers report their employees' tax and super information to the ATO.
- Employers with 19 or less employees will have to report under STP rules from 1 July 2019. Businesses with 20 or more employees began reporting from 1 July 2018.
- Using payroll or accounting software that offers STP, employers send their employees' tax and super information to the ATO each time they run their payroll and pay their employees.
- Information is sent either directly from the software, or through a third party – such as a sending service provider. Software providers can tell you more about how they offer STP reporting.
- MYOB and XERO have announced low-cost STP products for small business – one for employers and one for tax and BAS agents.
- The ATO has published a list of digital service providers including MYOB and Xero that will provide low cost STP software for the micro business sector. See list here Single Touch Payroll Solutions.
- Low cost solutions for micro business are expected to cost less than $10 a month, take only minutes to complete and not require software to be maintained by the employer.
- Micro business will not be forced to purchase payroll software as there will be alternative options available including allowing their registered tax or BAS agent to report quarterly.
- Exemptions to STP reporting will be available to businesses that have no internet or an unreliable connection.
For more information, see ATO - Single Touch Payroll. If you have any further questions regarding STP please do not hesitate to call one of our accounting team.